Small to medium sized enterprises in construction industry in Oman: Opportunities, and challenges

Abstract

The development of infrastructure, creation of jobs, and general economic expansion are all facilitated by the construction sector, which is important to Oman's economy. Small- to medium-sized businesses (SMEs) have become key actors in this sector, promoting innovation, employment growth, and local entrepreneurship. To better understand the problems, possibilities, and contributions made by SMEs to the construction industry in Oman, this research offers an outline of the study related to SMEs in Oman. The Sultanate of Oman's government has been fostering a working environment that is encouraging for small and medium-sized businesses for a decade to diversify the sources of income for the country's gross domestic product. Reduced oil dependency, which now stands at 80%, is one of the government's top priorities. As a result, there was a propensity to develop local businesses that were dependent on other forms of commerce. To provide funding for these businesses, the Public Authority for Small and Medium-Sized Enterprises and the AlRaffd Fund were founded. This process has continued for a long time. Although there are fewer firms listed on the market, and the majority of those registered with the General Authority for Small and Medium Enterprises are ineffective businesses, there are still failures. A mixed-methods strategy is used in the research to collect both qualitative and quantitative data. In-depth interviews with key stakeholders, including SME owners, industry experts, and government representatives, are conducted during the qualitative phase to learn more about the distinctive qualities and difficulties experienced by SMEs in the construction industry. In the quantitative phase, questionnaires are sent to a sample of SMEs to collect information on their company practices, financial performance, and growth goals. Initial findings point to numerous important issues. First off, SMEs in the construction sector confront conventional difficulties such restricted access to financing, red tape, and a lack of competent workers. These elements limit their potential for expansion and make it difficult for them to compete with larger businesses. Second, the study points to a number of possibilities that SMEs might seize, including public-private collaborations, government assistance schemes, and technology improvements. By taking advantage of these chances, they may increase their competitiveness and market presence. The survey also reveals the important contributions made by SMEs to the building sector. SMEs, although having minimal resources, are essential for creating jobs, especially for local areas. Through their flexibility, adaptability, and openness to adopt cutting-edge building techniques, they also promote innovation. In addition, SMEs support local economic growth by encouraging entrepreneurship and fostering the expansion of auxiliary sectors.